Here Is Why It’s Time to Trade Crypto Ahead of The Ethereum Merge

Bitcoin (BTC) traded above $22,000 on Monday as it continued its week-long surge ahead of inflation statistics from the United States coming on September 20-21 and a highly awaited Ethereum Merge, a major update on the smart contracts platform. At approximately 2:20 p.m, BTC was trading at $22,322.25, up almost 17% and recovering after a sharp correction mid-last week. 

Meanwhile, the price of Ethereum (ETH) is down by 2.84% in the past 24 hours. Notably, prices are below the support level of $1,724 in the hourly chart. If ETH buyers are unable to seize the initiative by the end of the day, there is a risk that the crucial $1,700 threshold may be tested the next day. On a daily chart, Ethereum (ETH) is trading below $1,800, slowing down aggressive buyers buoyed by the Ethereum Merge. 

Even if Ethereum is having trouble right now and Bitcoin is showing signs of improvement, it is anticipated that Ethereum will bounce back strongly and rally like Bitcoin in the days ahead.

Since the Ethereum Merge is fast-approaching, all eyes are on the crypto markets and specifically, how ETH and BTC will perform during and after the upgrade.

The Current State of Bitcoin and Ethereum 

This year, the cryptocurrency market has been under pressure as a result of the Federal Reserve increasing interest rates in an effort to curb excessive inflation. The Fed’s new monetary policy includes a tapering plan. As has been the case many times before, it has ended with a sudden policy shift as the taper proved too much for the economy to endure. Nonetheless, in the medium term, the Fed turning hawkish to combat out-of-control inflation has ended the euphoric bull run in equities and cryptocurrencies.

In addition to the risky investments, the stock market has been hammered. Since its all-time high in November, the entire crypto market has lost close to $2 trillion. Bitcoin has declined by more than 50% this year. This fall has also been caused by crypto-specific challenges, including the failure of important projects like the Terra collapse and widespread industry-wide bankruptcies. For instance, two major cryptocurrency trading platforms, Voyager and Celsius, declared bankruptcy in July 2022.

During this time, a long-awaited improvement to the Ethereum network known as the merge will finally be finished. This will convert the Ethereum blockchain from a proof-of-work (PoW) approach to a proof-of-stake (PoS) model, drastically reducing the amount of energy. This, according to proponents, might open up the possibility for a broader application of ETH, the coin that runs on Ethereum.

This week, cryptocurrencies confront a rare whammy: U.S. inflation statistics. Traders are going to want to keep their breath held for this ride on the rollercoaster. However, the long-awaited Ethereum Merge can turn out to be a silver lining for the entire crypto market. In a time rife with tales, the Merge in cryptocurrency is the most significant, and the wider world should pay attention since Ethereum’s carbon footprint will be reduced by 99%.

On the other hand, analysts noted that the combination will not necessarily speed up the notoriously slow Ethereum network, nor will it cut the transaction fees. Meanwhile, anticipation for the merger has increased. Since ETH’s annual low in mid-June, the price of the second-largest cryptocurrency has significantly surpassed Bitcoin’s. Since June 19, Ethereum is up more than 90% while Bitcoin is up just over 20%, which begs the issue of whether the unification has already been priced in.

When the Federal Open Market Committee (FOMC) meets next week, it is widely anticipated that the Federal Reserve will once again raise interest rates, which is another gloomy cloud hanging over the cryptocurrency market. The Merger may create a sell-the-fact situation in the cryptocurrency market, and we must remain vigilant ahead of the FOMC meeting next week. Bitcoin’s climb could continue, but it could not last long.

How Traders Can Take Advantage of Trading BTC and ETH?

Ethereum’s post-merge issuance drop may prove to be a significant upward catalyst, to the point where it may show to be much more potent than the current macro climate. The current macro environment is searching for risk assets, including cryptocurrencies and stocks, to decline as central banks globally become hawkish about taking action against inflation.

The Merge is predicted to cut the daily Ethereum emission rate from roughly 13,000 ETH to 1,600 ETH. Taking into account the fact that Ethereum’s network is constantly burning through its supply of coins and that transaction fee makes up a considerable amount of the cost of using the cryptocurrency, some analysts believe that crypto assets may see deflation in the years to come.

Consequently, it is quite probable that both Ethereum and Bitcoin will rally following the Merge. Experts now assert that traders can profit from trading Bitcoin and Ethereum. As traders look forward to the macro event, trading platforms like SimpleFX stands out. The reliable trading portal now allows clients to benefit from buying and selling ETHBTC, BTCUSD, and ETHUSD pairs.

SimpleFX, founded in 2014, is one of the earliest trading applications that enables cryptocurrency holders to trade their tokens in stocks and commodities. With Trade & Stake accounts, Ethereum holders can stake their ETH, get daily interest deposits, and use the staked ETH for trading. To distinguish itself as a provider of financial services, SimpleFX offers numerous trading platforms in addition to its proprietary software to assure a robust investing experience and competitive pricing.

The broker provides numerous opportunities, such as earning daily benefits from staking cryptocurrencies, the opportunity to use staked funds for margin trading, different trading circumstances, and an extensive asset catalog. Active traders are supported by educational resources and trading competitions in addition to these advantages. SimpleFX has developed a streamlined, all-in-one account type to provide consumers with access to highly competitive trading conditions.

The company has done an excellent job tailoring its all-inclusive account to traders of varying sizes, risk tolerance, and trading style. In addition, trading in cryptocurrencies is governed by a set of conditions that are unique to this particular asset type. In addition, SimpleFX provides a Demo Account so that novice traders can practice their skills without danger. Here is why traders should start crypto trading with SimpleFX:

One-Stop Destination For Optimal Bitcoin And Ethereum Trading

SimpleFX provides a wide variety of secure funding choices, however, you must verify the acceptable payment methods based on your location. The broker does not demand a minimum deposit and charges no fees for deposits. However, depending on the withdrawal method you choose, there may be fees associated with withdrawals.

Each withdrawal must be processed through the same deposit method. If you deposited using multiple payment methods and generated a profit/loss, you can withdraw funds using the method that was utilized for the highest deposit. Instead of trading directly on the financial markets, SimpleFX encourages affiliates, introducing brokers, and other partners to advertise its services in exchange for a commission.

These commissions can accumulate rapidly, which is one of the reasons why SimpleFX could be an excellent approach to generate a substantial revenue stream. SimpleFX partners can earn up to 50% of the income generated by clients they refer, in addition to 5% of the revenue made by traders referred by their referrals. They also have access to their transaction statistics in real-time via a third-party affiliate software that is transparent. Following are the trading instruments offered by SimpleFX:

SimpleFX offers excellent trading conditions and is one of the few brokers with specialized services for digital asset traders. In addition to the unique staking function, it features a product catalog that spans multiple asset classes, an abundance of industry data and insights, and a focus on client service. There are no excessive trading costs, and although the spreads are not the lowest, they are highly competitive.

The exchange provides users with multiple platforms including, SimpleFX WebTrader, Native iOS, Android, HarmonyOS (Huawei) app, and MetaTrader4. SimpleFX also offers a reward center to its users, this includes First Deposit Bonus, Trading Idea Contest, CashBack promos, and other special event promos (Black Friday, Bitcoin Pizza Day, etc.) Users can get more information here: https://app.simplefx.com/reward-center